One of the most frequently asked questions we receive from our agency is regarding the amount of insurance coverage an individual should purchase. While there are several factors that help determine the proper auto insurance coverage limit, we aim to provide some insight that will help you decide the correct limit for you and your family.

First of all, almost every state requires you to buy a minimum amount of liability coverage (usually $10,000 or $15,000 per accident). In nearly every case, the auto insurance coverage limits required by the state are way too low. If you’re found legally responsible for bills that are more than your insurance covers, you will have to pay the difference out of your own pocket. We recommend purchasing a minimum liability coverage of at least $100,000 per accident, but in some cases, even that limit may not be ufficient protection.

In such cases, consider purchasing an umbrella or excess liability policy. These policies pay when your underlying coverages are exhausted.   An umbrella policy typically costs between $200 and $300 per year for a million dollars in coverage.  If you have your homeowners and auto insurance with the same company, consider checking the cost of overage coverage with this company first. If you have coverage with different companies, it may be easier to buy it from your auto insurance company.

In addition to liability coverage, consider purchasing collision and comprehensive coverage, as well as uninsured and underinsured motorists coverage, towing, and rental car endorsements.

If you would like to explore various price options for the auto insurance coverages outlined above, please do not hesitate to contact our office.